OTTAWA (Reuters) – Canada will provide up to C$1.2 billion ($870 million) to help softwood lumber producers deal with U.S. countervailing and anti-dumping duties, Prime Minister Mark Carney said on Tuesday. Carney, speaking to reporters in the Pacific province of British Columbia, said Ottawa would make up to C$700 million available in loan guarantees and […]
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Canada to give lumber industry up to C$1.2 billion in aid to cope with US duties
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OTTAWA (Reuters) – Canada will provide up to C$1.2 billion ($870 million) to help softwood lumber producers deal with U.S. countervailing and anti-dumping duties, Prime Minister Mark Carney said on Tuesday.
Carney, speaking to reporters in the Pacific province of British Columbia, said Ottawa would make up to C$700 million available in loan guarantees and also provide C$500 million to help speed product development and market diversification.
The United States, which has for decades accused Canada of dumping lumber on the domestic market, imposes both anti-dumping and countervailing duties on imports of timber used in house construction. Canada denies it is dumping wood.
The dispute is an irritant in broader talks between the United States and Canada on a new economic and defense relationship. U.S. President Donald Trump hiked tariffs on some Canadian imports to 35% last week after negotiators failed to meet an August 1 deadline.
Last month the U.S. Commerce Department said it was almost tripling anti-dumping duties on most Canadian softwood to 20.56%. Canadian officials say they expect that when these are added to higher countervailing charges due to be announced shortly, total duties will rise to 34.5% from 14.5%.
($1 = 1.3776 Canadian dollars)
(Reporting by David Ljunggren and Promit Mukherjee; Editing by Sandra Maler)